Hyderabad, March 17:

The Indian banking system is solid under a ‘mature and strict regulation’ of Reserve Bank of India (RBI), Sanjiv Bajaj, President, CII and CMD, Bajaj Finserv Ltd.

While responding to a question in a panel discussion at the CII-SR Annual Regional Meeting in Hyderabad on Friday, Bajaj said there should be a difference between the ‘need and greed’ for banks. The crisis would follow if there was a significant mismatch between the liabilities and assets, Bajaj said, adding: “Banks must be risk creatures first but not return creatures.”

It must be kept in mind that bank, as an institution, would provide solid support to real economy and solidity of a bank was vital, he pointed out.

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While some start-ups/fintechs were doing ‘great’ work, the valuations were some times very high, he said. “Fortunately, we have a mature, strict and very safe regulator in RBI,” Bajaj said.

Later while responding to questions from newspersons, he said there was no shortage of credit flow to industry. On the key policy rates, he said: “We request RBI to pause.” While there was a time when global cooperation and collaboration was needed among regulators, now it’s time to draw up country-specific policies, he added.

On the impact of the US banking crisis on Indian industry or on any specific sector, he said it was for the government to examine the matter.